Nate Matherson

Nate is the Head of Growth at Numeral. He has founded multiple venture-backed companies and is a two-time Y Combinator Alum. He is based in Charleston, SC.

Nate Matherson

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SaaS

Is SaaS Taxable in Maine in 2025?

No. SaaS (software as a service) is currently exempt from sales tax in Maine; however, the state does tax many digital goods, such as downloadable music, e-books, and video games.

SaaS

Is SaaS Taxable in Virginia in 2025?

No. SaaS (software as a service) sales aren't currently taxable in Virginia. Sales of digital goods and cloud-based products are also not subject to sales tax in the state. That being said, Virginia’s Joint Subcommittee on Tax Policy is actively discussing the financial impact of implementing new taxes on software and digital goods.

SaaS

Is SaaS Taxable in Illinois in 2025?

While Illinois does not typically tax software as a service (SaaS), certain local jurisdictions — including the city of Chicago — do. For example, some SaaS providers may fall under the scope of Chicago’s Personal Property Lease Transaction Tax (PPLTT).

SaaS

Is SaaS Taxable in New Jersey in 2025?

No. According to the New Jersey Tax Division, cloud-computing services — including SaaS (software as a service) — are generally not subject to sales and use tax. An exception is when they are classified as information services.

SaaS

Is SaaS Taxable in Washington?

Yes. SaaS (software as a service) sales are nearly always taxable in Washington. The current state-level tax rate is 6.5%. Many local jurisdictions (such as cities and counties) in Washington impose their own sales tax as well. Staying informed about both state and local tax rates is key to ensuring compliance.

Sales Tax

Sales Tax vs. VAT: What Is the Difference?

Sales tax and VAT (value-added tax) are similar in principle: they are taxes, imposed by governments, on consumer goods and services. In the U.S., sales tax is the primary form of taxation on consumer goods. VAT can be considered a sales tax equivalent; it’s used by more than 170 other countries.

SaaS

Is SaaS Taxable in Colorado? 

Yes, in some parts of the state. SaaS (software as a service) is considered “non-tangible” under Colorado law, meaning that it’s not taxable at the state level. However, some local jurisdictions in Colorado have their own taxation rules regarding SaaS products and services. So in certain areas, including Denver, some SaaS offerings are taxable.

SaaS

Is SaaS Taxable in Maryland?

Yes. In Maryland, SaaS (software as a service) is considered a digital product, which means that most B2C (business-to-consumer) sales are taxed. However, there are several exemptions and exceptions, and most B2B (business-to-business) sales are not taxed.

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